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horsena [70]
2 years ago
15

On July 15, 2021, Cottonwood Industries sold a patent and equipment to Roquemore Corporation for $750,000 and $325,000, respecti

vely. On the date of the sale, the book value of the patent was $120,000, and the book value of the equipment was $400,000 (cost of $550,000 less accumulated depreciation of $150,000). Prepare the journal entries to record the sales of the patent and equipment.
Business
1 answer:
cupoosta [38]2 years ago
8 0

Answer:

Journal entry to record the Sale of Patent

Debit : Cash $750,000

Credit : Patent at Book Value $120,000

Credit : Profit and Loss $630,000

Journal entry to record the Sale of Equipment

Debit : Cash $325,000

Debit : Profit and loss $75,000

Debit : Accumulated depreciation $150,000

Credit : Equipment at Cost $550,000

Explanation:

During a sale transaction the entity recognizes 1. The Cash Proceeds resulting from the sale, 2. The Profit or loss resulting from the sale, 3.The entity derecognizes the Cost or Book Value of the Asset as well as the Accumulated depreciation.

A profit of $630,000 has been earned as a result of the sale of the Patent, whereas a loss of $75,000 has been incurred as a result of sale of Equipment.

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emmasim [6.3K]

Answer:

= $52.78 per share

Explanation:

<em>The value of a business can be determined using the free cash flow model. According to this model, the value of a firm is is the present value of its free cash flow discounted at the weigthed average cost of capital (WACC.)</em>

<em>The value of equity is the value of firm less value of other instruments (e.g debt and preferred stocks)</em>

<em>Value of equity = Value of the entire firm - Value of debt </em>

We can work out the the value per share using the steps below:

<em>Step 1</em>

<em>Calculate the total value of the firm</em>

Value of firm =  27.50/(0.1-0.07)

 = $916.66 million

<em>Step 2</em>

<em>Calculate the value of equity</em>

<em>Value of equity = Value of the entire firm - Value of debt</em>

= $916.66 million - $125.0 million

=791.666 million

<em>Step 3</em>

<em>Calculate the value per share</em>

Value per share = Value of equity/ units of common stock

=$791.666 million/15 million units

= $52.78 per share

3 0
2 years ago
Assume Intel Corporation (INTC) and Texas Instruments (TXN) report the following information. Intel Corp Texas Instruments ($ mi
VLD [36.1K]

Answer:

2015 FAT= 4,168323393

2016 FAT= 3,87219893

Explanation:

2015 2016

sales plant 34209 38826

propierty 15768 17111

net sales  12580 13392

propierty net 3018 3899

 

​FAT=Net Sales​/Average Fixed Assets  

 

2015 FAT=12580/3018  

2018 FAT=13392/(3899-3018)  

 

2015 FAT= 4,168323393

2016 FAT= 3,87219893

7 0
3 years ago
People are going to be different. The focus of managers should be to ________. Group of answer choices make sure the practices w
Solnce55 [7]

Answer:

find ways to develop strong relationships with and engage the entire workforce.

Explanation:

People are going to be different. The focus of managers should be to find ways to develop strong relationships with and engage the entire workforce.

A manager can be defined as an individual who is saddled with the responsibility of providing guidance, support, supervision, administrative control, as well as acting as a role model or example to the employees working in an organization by being morally upright.

Generally, managers are typically involved in taking up leadership roles and as such are expected to be build a strong relationship between their employees or subordinates by creating a fair ground for effective communication and sharing of resources and information. Also, they are required to engage their staff members (entire workforce) in the most efficient and effective manner.

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2 years ago
One advantage of modularization is that it simplifies the ____.
Basile [38]
One advantage of modularization is that it simplifies its own manufacturing systems. With this, companies can separate their material cost and product development, and they can also optimize their total product cost through increasing the potential of the variety of products, having a fast product development and upgrade, having a better time-to-market, service support, aftermarket, and lastly, enabling continuous market and product improvement. 
5 0
2 years ago
Why do many companies find that providing employees a comprehensive benefits package that includes insurance, retirement investm
mash [69]

Answer: Few employers believe that offering employee benefits is a worthwhile or cost-effective strategy for attracting and retaining the best employees

Explanation:

Several companies find that providing theye workers a comprehensive benefits package which consist ofinsurance, retirement investment and other benefits is worth the cost associated because it helps them retain and also attract their best staffs.

When employees are given the required support needed and given work related benefits, this is usually source of motivation to the employees and can help bring out the best in them.

8 0
2 years ago
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